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Karnataka Vehicle Tax - Rate & Payment Procedure - IndiaFilings Last updated: December 17th, 2019 5:58 PM

Karnataka Vehicle Tax

Karnataka vehicle tax or road tax is a state level tax that is levied on vehicles registered and used in the State. Vehicle tax regulations and rates differ from one state to another as it is regulated by the State Governments. In this article, we look at the various aspects of Karnataka Vehicle Tax in detail.

Karnataka Motor Vehicles Taxation Act

The road taxes for two-wheelers and four-wheelers that are registered in Bangalore are determined by Karnataka Motor Vehicles Taxation Act. The act was implemented in 1957 and this has undergone several improvements.

Karnataka Vehicle Tax Calculation

Vehicle taxes in Karnataka are calculated depending on the vehicle's age, cost, the original date of registration, seating capacity and engine capacity. In addition to this, the purpose of the vehicles and the place in which it was manufactured are considered while calculating the taxes.

Taxes Levied on Two Wheelers

As per the taxation guidelines, the tax charged on two-wheelers is dependent on the cost and age of the vehicle.

Vehicle Category

Applicable Tax

New two-wheeler pricing below Rs. 50,000

10% of the cost of the vehicle

New two-wheeler pricing between Rs. 50,000 and Rs. 1,00,000

12% of the cost of the vehicle

New two-wheeler pricing above than Rs. 1,00,000 18% of the total cost of the vehicle

New two-wheeler that runs on electricity

4% of the cost total of the vehicle
Used two-wheelers that are not more than 2 years 93% of the cost of the vehicle
Used Two Wheelers that are more than 3 years but not more than 4 years 81% of the cost of the vehicle
Used Two Wheelers that are more than 4 years but not more than 5 years 75% of the cost of the vehicle
Used Two Wheelers that are more than 5 years but not more than 6 years 69% of the cost of the vehicle
Used Two Wheelers that are more than 6 years but not more than 7 years 64% of the cost of the vehicle
Used Two Wheelers that are more than 7 years but not more than 8 years 59% of the cost of the vehicle
Used Two Wheelers that are more than 8 years but not more than 9 years 54% of the cost of the vehicle
Used Two Wheelers that are more than 9 years but not more than 10 years 49% of the cost of the vehicle
Used Two Wheelers that are more than 10 years but not more than 11 years 45% of the cost of the vehicle
Used Two Wheelers that are more than 11 years but not more than 12 years 41% of the cost of the vehicle
Used Two Wheelers that are more than 12 years but not more than 13 years 37% of the cost of the vehicle
Used Two Wheelers that are more than 13 years but not more than 14 years 33% of the cost of the vehicle
Used Two Wheelers that are more than 14 years but not more than 15 years 29% of the cost of the vehicle
Used Two Wheelers that are more than 15 years

25% of the cost of the vehicle

 

Taxes Levied on Four Wheelers

As per the taxation guidelines, the taxes levied for four-wheelers depends on the use of the vehicle and its classification. The vehicles that come under this section include cars and jeeps that are bought for personal use having a floor area up to 5 square meters.

Vehicle Category

 

Applicable Tax

A new vehicle that costs less than Rs. 5 lakhs 13% of the cost of the vehicles
New vehicles that cost Rs. 5 lakhs to Rs. 10 lakhs 14% of the cost of the vehicles
New vehicles that cost Rs. 10 lakhs to Rs. 20 lakhs 17% of the cost of the vehicles
New vehicles that cost more than Rs. 20 lakhs 18% of the cost of the vehicles
Vehicles that run on electricity 4% of the cost of the vehicles
Vehicles that are below 5 years old 75% to 93% as per clause A
Vehicles that are 5 years to 10 years old   49% to 69% as per clause A
 

Vehicles that are up to 10 to 15 years old

45% to 25% as per clause A
Besides these taxes, there is a separate tax that is levied in the classic and vintage cars that are registered in Karnataka. This is a lifetime tax that has to be paid only once.
  • For Classic cars, it is Rs. 1000
  • For vintage cars, it is Rs. 500

Taxes on Imported Vehicles

Taxes for vehicles that are imported include the cost of the vehicle, the customs duty that area applicable and other costs charged for bringing the vehicle to the state for sale.

Taxes on Vehicles Registered in Other States

If a vehicle operating in Karnataka is registered in other State, then the vehicle owner need pay lifetime tax unless the vehicle is used in the state for more than a year.

Payment of Vehicle Tax in Karnataka

Payment of road tax can be made in the Regional Transport offices at the time of registering the vehicle. The vehicle owner has to furnish registration documents of the vehicle in addition of other supporting documents such as invoice of the sale of the vehicle. There will be a requirement to fill a form that is used in the determination of the tax that has to be paid. The amount can be paid in the form of cash or in Bank DD. Once the payment is done, the recipient receives a receipt mentioning the amount that is paid and a taxation card, that depicts the rate of tax charged and the taxation period for which the tax has been paid.